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As well as launching a store-pick service for home delivery orders, Bradford-based Morrisons has also previously announced it would take up space at Ocado's new customer fulfilment centre in Erith, south-east London, which will boost its reach.

But the extra investments will see Morrisons.com remain loss-making for slightly longer, the supermarket confirmed, although it is expected to be a key part of Mr Potts' plans to boost group profits by up to £100m in future years.

The re-negotiated terms of its deal with Ocado will also see Morrisons end its profit sharing agreement once the store-picking service is up and running.

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Fewer restrictions

Ocado will likewise see fewer restrictions which currently prevent it from working with other retailers, although it has still agreed not to partner with major players Tesco, Asda , Sainsbury's and discounters Aldi and Lidl.

The expansion of Morrisons.com comes as the chain stages a fightback against its rivals after being slow to join the race online.

It signed a £170m contract with Ocado in 2013, providing the chain with its first online delivery service.

It also recently joined forces with Amazon, allowing the internet giant to deliver fresh and frozen food products for the first time.

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AmazonFresh launched in June and is now available to customers in 128 postcodes across London who are members of the Prime subscription service.

He added: "The new investments in online growth are further examples of Morrisons building a broader business and will allow millions more customers all over Britain to enjoy Morrisons' good-quality fresh food and great value for money."